On July 10, 2025, the parties in the action Solak v. Mountain Crest Capital LLC, et al. (“MCAD Class Action”), C.A. No. 2023-0469-BWD, filed a Stipulation of Compromise and Settlement (the “Settlement”) [CLICK HERE TO VIEW SETTLEMENT AGREEMENT], which sets forth the terms and conditions for the proposed Settlement and dismissal with prejudice of the action, subject to review and approval by the Court. The Class in the Action consists of all record and beneficial holders of MCAD common stock who held shares as of the Record Date of September 7, 2021 through the closing of the de-SPAC Transaction on October 28, 2021, including any and all successors, transferees, or assigns of such stockholders (“Class Members”). Excluded from the Class are Defendants, members of the immediate family of any Defendant, any entity in which a Defendant has a controlling interest, and the legal representatives, heirs, successors, or assigns of any such excluded person.
On July 25, 2025, Vice Chancellor Bonnie David of the Court of Chancery of the State of Delaware (the “Court”) granted preliminary approval of the class Settlement and entered the Scheduling Order [CLICK HERE TO VIEW SCHEDULING ORDER], which set a date to consider approval of the Settlement (the “Settlement Hearing”) for October 24, 2025, at 1:30 p.m. ET at the Court of Chancery Courthouse, The Circle, Georgetown, Delaware 19947. At the Settlement Hearing, the Court will: (i) determine whether to finally certify the Class for settlement purposes only, pursuant to Court of Chancery Rules 23(a), 23(b)(1), and 23(b)(2); (ii) determine whether Plaintiff and Plaintiff’s Counsel have adequately represented the Class, and whether Plaintiff should be finally appointed as Class representatives for the Class and Plaintiff’s Counsel should be finally appointed as Class counsel for the Class; (iii) determine whether the proposed Settlement should be approved as fair, reasonable, and adequate to the Class and in the best interests of the Class; (iv) determine whether the Action should be dismissed with prejudice and the Releases provided under the Settlement should be granted; (v) determine whether the Order and Final Judgment approving the Settlement should be entered; (vi) determine whether the proposed Plan of Allocation of the Net Settlement Fund is fair and reasonable, and should therefore be approved; (vii) determine whether and in what amount any Fee and Expense Award should be paid to Plaintiff’s Counsel out of the Settlement Fund; (viii) hear and rule on any objections to the Settlement, the proposed Plan of Allocation, and/or Plaintiff’s Counsel’s application for a Fee and Expense Award; and (ix) consider any other matters that may properly be brought before the Court in connection with the Settlement.
Pursuant to the Scheduling Order, notice is hereby provided regarding the above-captioned stockholder class action (the “Action”) [CLICK HERE TO VIEW SUMMARY NOTICE OF SETTLEMENT].
Class Members with questions about the Settlement should contact Newman Ferrara partner Jeffrey M. Norton at (212) 619-5400 or by email at jnorton@nfllp.com.
